Quote:
Originally Posted by stephen wilson
Well yeah, the genius part was doing it on the taxpayer's Dollar ! (mostly) Large subsidies continue to make it viable..
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If you ever need to compete with China, then you're going to have to deal with concept of public funding to break new industrial ground that carry huge capital expenses and burn rates from hell. The new Asian economies have no issue with throwing trillions into new industries thereby articificially lowering prices that our private industries must compete with. Few investors are going to jump into that shark tank solo. So communist economies like China's stuff their pockets deep, employ tens of thousands, open up factory after factory and grow their economies with our missed oppourtunities because U.S. private equity only wants 'sure bet' investments that pay off in 12 to 18 months so that they can sell prospective investors on how good they are at beating the S&P. It's all short term while our competitors overseas focus on the big picture.
China has plans to FORCE hundreds of millions of their citizens to relocate from the countryside into their urban sectors just to fill up the assembly lines and to get at raw material.
Dismissing public funding could be understandable when the global economy consisted of only the U.S. This is a whole new game now.
Sovereign wealth funds and direct monetary injection by Asian central banks into their manufacturing sectors need to be factored in.